Erie School Board passes $154.6 million budget without tax increase - Insurance News | InsuranceNewsNet

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June 25, 2015 Newswires
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Erie School Board passes $154.6 million budget without tax increase

Erie Times-News (PA)

June 25--ERIE, Pa. -- Erie homeowners won't face a tax increase in 2015-16, even if the Erie School District doesn't get the extra state money it's banking on.

The Erie School Board on Wednesday unanimously passed a $154.6 million budget that holds the line on taxes but relies heavily on $6.6 million in proposed additional state revenue and savings in Gov. Tom Wolf's budget.

The School Board can reopen the budget if that money doesn't materialize, but by law the tax rate cannot change.

The board decided early in the budget process to take a tax increase off the table, President Robert Casillo said.

"We needed the discipline to make sure we can work within the allocated money we have," Casillo said.

At $154.6 million, the 2015-16 budget is roughly $4.8 million larger than the 2014-15 budget, an increase driven mainly by escalating charter school and retirement costs. It includes no staffing or program cuts.

On the expense end, the district expects to spend an additional $2.6 in retirement contributions over 2014-15, up to $16.3 million, and an additional $2.2 million in charter tuition. That's after $1 million in charter savings the district would see from Wolf's proposal.

The district also expects to save an additional $700,000 from an early retirement incentive.

Roughly $600,000 in health insurance costs once included in the general fund will be paid through other funds. The GE Foundation will pick up the $330,000 cost of academic coaches in elementary schools. And the district will cut about $262,000 in facility renovations.

On the revenue end, the district expects to receive about $1.4 million less in property tax revenue and $100,000 less in tuition from students who live outside the district.

But the budget also assumes the district will receive an additional $5.6 million in basic and special education subsidies included in Wolf's proposal. And the district will use $1.2 million in one-time money from the district's health reinsurer to support the general fund.

Brian Polito, the district's chief financial officer, already has outlined a contingency plan for the district should Wolf's additional dollars not come to fruition. It involves using grant dollars to pay for salaries, shifting money from reserve funds and, if needed, cutting individual building budgets.

In a worst-case scenario in which the district receives no additional funding above 2014-15 levels, nearly $1.2 million in staff and program cuts would be needed.

Superintendent Jay Badams said he remains confident the district will receive some increase.

"I'm really encouraged we're going to see some problem-solving instead of finger-pointing out of Harrisburg," he said.

ERICA ERWIN can be reached at 870-1846 or by e-mail. Follow her on Twitter at twitter.com/ETNerwin. Read the Happier Ed education blog at blogs.goerie.com/education and post comments.

other business

The School Board voted to continue working with Kelly Services Inc. to provide substitute staffing through June 2016.

___

(c)2015 the Erie Times-News (Erie, Pa.)

Visit the Erie Times-News (Erie, Pa.) at www.GoErie.com

Distributed by Tribune Content Agency, LLC.

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